Current Issue

Star Architects and Buyers’ Choice Behavior in the Deep Pocket Market

Nobuya FUKUGAWA
IJCCI volume 3, issue 1, November 2015

The superstar phenomenon where the most talented people receive vastly higher rewards than those with slightly less talent is prevalent across the entire economy. Although many empirical studies focus on the mass market where a large number of buyers pay a small amount of money for talent, little evidence has been provided for the deep pocket market where a small number of buyers pay greatly for talent. In this study architects were chosen as a sample representative occupation of the deep pocket market. Whether their success was determined by pure luck, assuming they were equally talented, was tested. The results show that concentrations of orders from clients to a small number of architects was not the result of luck. Unlike the mass market where the bandwagon effect (buyers’ choice behavior to simply follow the crowd) has been observed in previous studies, clients appear to have chosen architects based on their talent.

 

Keywords: Superstar phenomenon, Architects, Deep pocket market, Yule distribution, Japan